The Financial Stability Board (FSB) sets out its work program, providing an indicative timeline of the key deliverables planned for 2023. In addition, FSB published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the lessons learned from recent banking sector turmoil. It also sets out recommendations to achieve greater convergence in cyber incident reporting and develop a common format for incident reporting exchange (FIRE).
The 2023 work program reflects the global and cross-sectoral approach of FSB to financial stability policy. The work priorities and new initiatives include supporting global cooperation on financial stability, enhancing the resilience of non-bank financial intermediation (NBFI), enhancing cross-border payments, harnessing the benefits of digital innovation while containing its risks, addressing financial risks from climate change, as well as enhancing cyber and operational resilience. Key deliverables for 2023 and their timelines are presented below:
- April: Report on the pre-requisites for, and feasibility of, developing a format for incident reporting exchange (FIRE) to standardize common information requirements for incident reporting.
- July: Annual progress report on FSB Roadmap for addressing financial risks from climate change, FSB high-level recommendations on the regulation, supervision and oversight of global stablecoin arrangements and crypto-asset activities.
- September: Synthesis paper on macroeconomic and regulatory perspectives on crypto assets (jointly with IMF), progress report on enhancing resilience in NBFI, report on financial stability implications of leverage in the non-bank sector.
- October: Annual report on implementation of the cross-border payments roadmap, report on progress in achieving consistent climate-related financial disclosures, report on strengthening financial institutions’ ability to manage third-party risks and outsourcing.
- November: Identification of global systemically important banks (G-SIBs) for 2023.
- December: 2023 resolution report and global monitoring report on NBFI.
The Letter to G20 Finance Ministers and Central Bank Governors notes that the financial stability outlook has become more challenging in recent weeks, as a consequence of turmoil in the banking sector. The letter highlights that recent events provide important lessons for financial authorities, including for bank prudential and resolution frameworks. FSB is working closely with the Basel Committee on Banking Supervision (BCBS) and other standard-setting bodies to comprehensively draw out these lessons and consequent policy priorities. Alongside a focus on the banking system, the letter stresses the continued priority placed by the FSB on its program of reforms to address vulnerabilities in—and enhance the resilience of—non-bank financial intermediation. The letter also introduces recommendations to achieve greater convergence in cyber incident reporting and a concept note for developing a common format for incident reporting exchange (FIRE) to collect incident information from financial institutions, which the FSB will deliver to the upcoming G20 meeting in April.
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